The Prince’s Trust Australia Limited...2019/08/19 · 513,842 Cash at beginning of period/year 1,449,438 935,596 Cash at end of period/year 2(e), 5 1,440,698 1,449,438 The Prince’s

The Prince’s Trust Australia Limited ABN 73 161 872 993

Financial report

For the nine-month period ended 31 March 2019

The Prince’s Trust Australia Limited Financial report For the nine-month period ended 31 March 2019

Contents

Page

Directors’ Report 1

Directors’ declaration 4

Statement of comprehensive income 5

Statement of financial position 6

Statement of changes in equity 7

Statement of cash flows 8

Notes to the financial statements 9

Independent auditor’s report 23

Auditor’s independence declaration 26


1

Directors’ Report

The Board of Directors of The Prince’s Trust Australia Limited has pleasure in submitting the financial report of the Company for the period ended 31 March 2019:

1. Directors

The names of each person who has been a director in office at any time during, or sincethe end of, the period are:

Mr John Landerer CBE AM (appointed 30 June 2018)

Dame Martina Milburn DCVO CBEMr Dominic Richards

Miss Holly Ransom (resigned 23 August 2019)

Mr Shaun Bonétt (appointed 18th October 2018)

Miss Juliet Reiden (appointed 19th October 2018)

Hon Julie Bishop (appointed 1 November 2018)Mr Warren Mundine (appointed 27 November 2018; resigned 13 February 2019)

Mr Karim Sumar (appointed 30 July 2019)Mr Ian Smith AM (appointed 28 August 2019)

Mrs Cheryl Bart AO (resigned 1 August 2018)

Lieutenant General Peter Leahy AC (Rtd) (resigned 1 August 2018)Mr Paul Sheehan AM (resigned 1 August 2018)

Mr Peter Yu (resigned 3 August 2018)

2. Results

The operating deficit for the period ended 31 March 2019 was $255,033 (2018: surplus of$540,747). The deficit result is primarily attributable to two factors: the shortened financialperiod of nine rather than twelve months, with many Patrons’ contributions who havetraditionally paid their annual contribution in the quarter ending 30 June being omitted inthis nine month report; and continuing to grow the operations of the Company withinvestments in human resources and the development and delivery of quality programs inSustainable Communities, Defence Members, their families and Young People.

3. Dividends

In accordance with the constitution, no dividends have been declared or paid by theCompany during the financial period.

4. Principal activities

The Prince’s Trust Australia Limited (“Prince’s Trust Australia”) is a company limited byguarantee. The aim of Prince’s Trust Australia is to deliver social impact, by transforminglives and building sustainable communities in Australia. Prince’s Trust Australia supports

the development and delivery of innovative, high impact projects across three focus areas:Young People, Sustainable Communities and Defence Members and their Families.


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5. Likely developments

Prince’s Trust Australia is growing its operations over the next four years to address thechanging nature of work to ensure an increasing number of young people, defencemembers, veterans and their families are able to participate in enterprise and self-employment. In addition, Prince’s Trust Australia plans to co-design an exemplardevelopment in Sydney to demonstrate a mid-rise solution to increasing densitypressures. This project is being completed in partnership with the Government of NewSouth Wales and will include social and affordable housing. These activities will requireattracting increased funding to deliver greater social and community impact.

6. Significant changes in state of affairs

Chief Executive, Janine Kirk, resigned in December 2018 and has been succeeded byChristopher John who was appointed in March 2019. A new business model for theCompany was adopted in November 2018 to increase human resources and capabilitieswithin the organisation to deliver on our mission. There were no other significant changesin the affairs of the Company during the financial period.

7. Events subsequent to the end of the financial period

No matters or circumstances have arisen since the end of the financial period whichsignificantly affected or may significantly affect the operations of the Company, the resultsof those operations, or the state of affairs of the Company in future financial years.

8. Indemnification of officers or auditors

During or since the end of the period, the Company has given an indemnity or entered intoan agreement to indemnify, or paid or agreed to pay insurance premiums as follows:

The Company has paid premiums to insure each of the directors and officers againstliabilities for costs and expenses incurred by them in defending legal proceedings arisingfrom their conduct while acting in the capacity of directors of the company, other thanconduct involving a wilful breach of duty in relation to the company. Confidentiality clausespreclude disclosure of the premiums for these policies.

To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst &Young, as part of the terms of its audit engagement agreement against claims by thirdparties arising from the audit (for an unspecified amount). No payment has been made toindemnify Ernst & Young during or since the financial period.

9. Environmental legislation

The Company’s operations are not regulated by any significant environmental regulationunder a law of the Commonwealth or of a state or territory.


5

Statement of profit or loss and other comprehensive income

Note(s)

1 July 2018 to 31 March 2019 30 June 2018

$ $

REVENUE

Donations and other in-kind support 3 902,638 1,721,471

Interest income 3,084 5,204

Other income 3,805 -

Revenue and other income 909,527 1,726,675

EXPENDITURE

Auditor’s remuneration

40,000 37,000

Communications/Marketing/Events 23,360 14,639

Depreciation 7 3,437 9,292

Legal expenses

13,637 37,222

Operations/Administration 623,495 360,605

Project Development

118,831 133,250

Programme Implementation 179,116 469,888

Rent expense 51,700 68,937

Travel expenses 110,984 55,095

Expenditure 1,164,560 1,185,928

Net (deficit) surplus for the period/year (255,033) 540,747

OTHER COMPREHENSIVE INCOME

Other comprehensive income for the period - -

Total comprehensive income for the period/year (255,033) 540,747


6

Statement of financial position

Note 31 March 2019 30 June 2018

$ $ ASSETS

Current assets

Cash 5

1,440,698

1,449,438

Other receivables 6

138,665

148,026

Total current assets

1,579,363

1,597,464

Non-current assets

Plant and equipment 7

27,374

30,810

Total non-current assets

27,374

30,810

Total assets

1,606,737

1,628,274

LIABILITIES

Current liabilities

Trade and other payables 8

375,297

102,381

Provisions 9

19,995

41,304

Total current liabilities

395,292

143,685

Non-current liabilities

Provisions 9

1,124

19,238

Total non-current liabilities

1,124

19,238

Total liabilities

396,416

162,923

Net assets

1,210,321

1,465,351

EQUITY

Retained earnings 10 1,210,321

1,465,351

Total equity

1,210,321

1,465,351


7

Statement of changes in equity

Retained earnings Total

$ $

Balance at 30 June 2017 924,604

924,604

Net surplus for the period 540,750

540,750 Other comprehensive income - -

Total comprehensive income for the period 540,750

540,750

Balance at 30 June 2018 1,465,354

1,465,354 Net deficit (surplus) for the period (255,033) (255,033)

Other comprehensive income - -

Total comprehensive income for the period (255,033) (255,033)

Balance at 31 March 2019 1,210,321

1,210,321


8

Statement of cash flows Note(s) 31 March 2019 30 June 2018

$ $

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from donations 998,337 1,510,660 Interest received 3,084 - Payments to suppliers & employees (1,010,161) (981,252)

Net cash flows from operating activities 12 (8,740) 529,408

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of plant and equipment 7 - (15,566)

Net cash flows used in investing activities - (15,566)

Net (decrease)/increase in cash (8,740)

513,842

Cash at beginning of period/year

1,449,438

935,596

Cash at end of period/year 2(e), 5 1,440,698

1,449,438


9

Notes to and forming part of the financial statements

1. Corporate information The Prince’s Trust Australia Limited (the Company) is a not-for-profit public company limited by guarantee incorporated and domiciled in Australia. The address of its registered office and its principal place of business is Level 46, 101 Collin Street, Melbourne.

The financial statements of the Company for the nine-month period ended 31 March 2019 were authorised in accordance with a resolution of the Directors on 26 September 2019.

The sole member of the Company is The Prince’s Trust.

During the year, the Company changed its financial year-end from 30 June to 31 March to coincide with the financial year end of its sole member.

The auditors of the Company are Ernst and Young.

2. Summary of accounting policies

a. Basis of preparation These general purpose financial statements have been prepared in accordance with the requirements of the Australian Accounting Standards – Reduced Disclosure Requirements, Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board.

The Company complies with Australian Accounting Standards – Reduced Disclosure Requirements as issued by the Australian Accounting Standards Board and the Australian Charities and Not-for-Profits Commission Act 2012.

The Directors have elected to apply the following Accounting Standards:

• AASB 1053 Application of Tiers of Australian Accounting Standards;

and

• AASB 2010-2 Amendments to Australian Accounting Standards Arising from Reduced Disclosure Requirements.

The adoption of these standards has resulted in significantly reduced disclosures throughout the notes to the financial statements. There was no impact on the reporting financial position and performance of the Company.


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Notes to and forming part of the financial statements (continued)

2. Summary of accounting policies (continued)

a. Basis of preparation (continued) AASB 1053 and AASB 2010-2

AASB 1053 establishes a differential financial reporting framework consisting of two tiers of reporting requirements for general purpose financial statements:

Tier 1 – Australian Accounting Standards

Tier 2 – Australian Accounting Standards – reduced disclosure requirements

AASB 2010-2 makes amendments to each standard and interpretation, indicating the disclosures not required to be made by Tier 2 entities or inserting reduced disclosure requirement paragraphs requiring simplified disclosures for Tier 2 entities.

Historical cost convention

The financial statements have been prepared on the basis of historical cost, except where noted otherwise.

Cost is based on the fair values of the consideration given in exchange for assets.

Changes in accounting policy and disclosures

The accounting policies adopted are consistent with those of the previous year. There has been no material change of accounting policies to the financial statements due to changes in the accounting standards.

The current financial period covers 9 months because of the Company’s change in its financial year end to 31 March effective from 31 March 2019 from 30 June (which applied up to and including the year-ended 30 June 2018). As such, comparisons of the financial performance for the nine-month period ended 31 March 2019 and the financial year ended 30 June 2018 are limited in their usefulness.

Currency

The financial statements are presented in Australian dollars, which is the Company’s functional and presentation currency.

b. Significant accounting judgements, estimates and assumptions The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses.


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b. Significant accounting judgements, estimates and assumptions (continued) The estimates and associated assumptions are based on historical experience and other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

c. Revenue recognition Revenue is measured at the fair value of consideration received or receivable. Revenue is recognised net of any amounts of goods and services tax (GST) payable to the Australian Taxation Office.

Donations

Donations collected are recognised as revenue when the Company gains control, economic benefits are probable and the amount of the donation can be measured reliably.

In-kind support

Services and office facilities donated are included at the fair value to the company where this can be quantified.

No amounts are included in the financial statements for services donated by volunteers.

d. Expenditure All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to a particular category they have been allocated to activities on a basis consistent with use of the resources.

e. Cash

Cash in the statement of financial position comprises cash at bank. For the purposes of the statement of cash flow, cash is as defined above, net of any outstanding bank overdrafts.


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f. Donations and other receivables

Donations and other receivables comprise amounts due from supporters and other parties. The carrying amount of the receivable is deemed to reflect fair value.

The Company holds only donation receivables with no financing component and which have maturities of less than 12 months at amortised cost and, as such, has chosen to apply simplified approach for expected credit losses under AASB 9 to all its donation receivables.

Other receivables are recognised at amortised cost, less any allowance for expected credit losses.

g. Plant and equipment

Basis of measurement of carrying amount

Plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses.

Depreciation

Items of plant and equipment are depreciated over their useful lives to the Company commencing from the time the asset is held ready for use. Depreciation is calculated on a straight-line basis over the expected useful economic lives of the assets as follows:

Computers and software 3 – 4 years

Office equipment 5 – 20 years

Website 3 years

Impairment

The carrying values of plant and equipment are reviewed for impairment at each reporting date, with recoverable amount being estimated when events or changes in circumstances indicate that the carrying value may be impaired.

The recoverable amount of plant and equipment is the higher of fair value less costs of disposal and value in use.

An impairment loss exists when the carrying value of an asset exceeds its estimated recoverable amount. The asset is then written down to its recoverable amount.

For plant and equipment, impairment losses are recognised in the statement of comprehensive income.


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g. Plant and equipment (continued)

Derecognition and disposal

An item of property, plant and equipment is derecognised upon disposal, when the item is no longer used in the operations of the Company or when it has no sale value. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of comprehensive income in the period the asset is derecognised.

h. Trade creditors and other payables Trade creditors and other payables represent liabilities for goods and services provided to the company before the end of the period that are unpaid. These amounts are usually settled in 30 days. The carrying amount of the creditors and payables is deemed to reflect fair value.

i. Employee benefits Employee benefits comprise salaries, annual, non-accumulating sick and long service leave, certain fringe benefits, workers compensation insurance and training costs, and contributions to superannuation plans.

Liabilities for salaries expected to be settled within 12 months of the reporting date are recognised in other payables in respect of employees’ services up to the reporting date. Liabilities for non-accumulating sick leave are recognised when the leave is taken and are measured at the rates paid or payable.

The Company pays contributions to certain defined contribution superannuation plans. Contributions are recognised in the statement of comprehensive income when they are due. The Company has no obligation to pay further contributions to these plans if the plans do not hold sufficient assets to pay all employee benefits relating to employee service in current and prior periods.

j. Income tax

The Company is a charitable institution for the purposes of Australian taxation legislation and is therefore exempt from income tax. This exemption has been confirmed by the Australian Taxation Office.


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j. Income Tax (continued)

Goods and services tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST except where the amount of GST incurred is not recoverable from the Australian Taxation Office, in which case it is recognised as part of the cost of acquisition of an asset or as part of an item of expense.

Receivables and payables are recognised inclusive of GST.

The net amount of GST recoverable from or payable to the Australian Taxation Office is included as part of receivables or payables.

Cash flow is included in the statement of cash flow on a net basis. The GST component of cash flow arising from investing and financing activities that is recoverable from or payable to the Australian Taxation Office is excluded from amounts classified as operating cash flow.

k. Foreign currency translation

Transactions in foreign currencies are recorded initially by applying the exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Foreign currency differences arising on retranslation are recognised in statement of comprehensive income.

l. New accounting standards and interpretations issued, but not yet effective

The following standards and interpretations were in issue but not yet effective for the Company. Management anticipates the adoption of these Standards will have no material financial impact on the financial report of the Company.

AASB 16 Leases AASB 16 Leases will become effective for annual periods beginning on or after 1 January 2019. Where the Company has entered into lease contracts as lessee, all contracts previously defined as Operating Leases under AASB 117 Leases are rolling contracts of 12 months or less and will be treated as short term leases.

Where the Company has entered into lease agreements as lessor, the adoption of this standard is not expected to have a material impact on the amounts recognised in the current or future periods.


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l. New accounting standards and interpretations issued, but not yet effective AASB 1058 Income of Not-for-Profit Entities AASB 1058 Income of Not-for-Profit Entities, in conjunction with AASB 15 Contracts with customers will become effective for annual periods beginning on or after 1 January 2019. AASB 1058 will defer income recognition in some circumstances for not-for-profit entities, particularly where there is a performance obligation or any other liability. In addition, certain components in an arrangement, such as donations, may be separated from other types of income and recognised immediately. The Standard also expands the circumstances in which not-for-profit entities are required to recognise income for goods and services received for consideration that is significantly less than the fair value of the asset principally to enable the entity to further its objectives (discounted goods and services), including for example, peppercorn leases. Consequently AASB 1004 Contributions is also amended, with its scope effectively limited to address issues specific to government entities and contributions by owners in a public sector entity context.

Management has not yet completed a full assessment of the impact of these standards but based on preliminary reviews expect no significant changes.

3. Donations and other in kind support

1 July 2018 to 31 March 2019

$

30 June 2018

$ Donations from:

- individuals 25,000 313,000 - charitable foundations 701,044 1,075,000

- corporate donors 67,363 196,812 Services-in-kind

- Office space 51,700 68,937

- Meeting catering 3,894 - - Legal 13,637 30,722

- Audit 40,000 37,000

902,638 1,721,471


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Notes to and forming part of the financial statements (continued) 4. Employee expense

1 July 2018 to 31 March 2019

$

30 June 2018

$

Salaries 511,439 388,705

Employee Fringe Benefit Defined contribution superannuation plan expense

848

39,779

-

35,206

Workers compensation insurance 6,977 4,913

559,043 428,824

Employee benefit expenses are allocated to cost centres on an activity-based costing basis.

5. Cash 31 March 2019

$ 30 June 2018

$ Cash at bank 1,440,698 1,449,438

1,440,698 1,449,438

6. Other receivables

The Company’s exposure to credit risk and impairment losses related to donations and other receivables is disclosed in note 12.

31 March 2019 $

30 June 2018 $

Other receivables 138,665 148,026

138,665 148,026


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7. Plant and equipment

Computers and

software $

Office furniture

and equipment

$ Website

$

Total

$ Cost At 1 July 2018 39,656 16,487 25,590 81,733 At 31 March 2019 39,656 16,487 25,590 81,733 Accumulated Depreciation At 1 July 2018 19,013 9,189 22,721 50,923 Charge for year 2,387 348 702 3,437 At 31 March 2019 21,253 9,684 23,423 54,360 Net Carrying Amount At 30 June 2018 20,643 7,298 2,869 30,810

At 31 March 2019 18,256 6,950 2,168 27,374

8. Trade and other payables

31 March 2019 $

30 June 2018

$ Trade creditors 54,041 33,288 Credit card payables

Other payroll liabilities

Accruals Deferred Revenue

507

18,595

192,154 110,000

1,233

5,838

62,022 -

375,297 102,381

The company’s exposure to liquidity risks related to trade creditors and other payables is disclosed in Note 11.


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9. Provisions

31 March 2019 $

30 June 2018

$ Annual leave – current 19,995 41,304 Long service leave – non-current 1,124 19,238 21,119 60,542

10. Total equity

a. Movements in equity Details of the movement in each reserve and fund are provided in the statement of changes in equity.

b. Details of reserves and funds included in statement of changes in equity Retained earnings

The retained earnings represent a surplus over the expenses at the end of the accounting period.

c. Members’ guarantee The Company is limited by guarantee. In the event of the company being wound up, the constitution states that the member is required to contribute a maximum of $10 towards meeting any outstanding obligations of the Company.

At 31 March 2019 there is one member.

11. Financial instruments

a. Financial risk management – Objectives and policies The Company’s financial instruments comprise cash, donations and other receivables, and amounts payable to trade creditors and other parties.

The main risks arising from the Company’s financial instruments are liquidity risk and credit risk. The Company does not use derivative instruments to manage risks associated with its financial instruments.

The Directors have overall responsibility for risk management, including risks associated with financial instruments. Risk management policies are established to identify and analyse the risks associated with the Company’s financial instruments, to set appropriate risk limits and controls and to monitor the risks and adherence to limits.


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11. Financial instruments (continued)

a. Financial risk management – Objectives and policies (continued)

The Board is responsible for monitoring the effectiveness of the Company’s risk management policies and processes and to regularly review risk management policies and systems, taking into account changes in market conditions, and the Company’s activities. The Board is also responsible for developing and monitoring investment policies.

Liquidity risk

Liquidity risk is the risk that the Company will not be able to fund its obligations as they fall due.

The Company manages liquidity risk by monitoring forecast cash flows and ensuring that adequate liquid funds are available to meet normal operating expenses for 12 months.

The following are the contractual maturities of financial liabilities:

Carrying amount

$

Contractual cash flow

(undiscounted) $

6 months or less

$ At 30 June 2018 Trade and other payables (Note 8) 102,381 102,381 102,381 102,381 102,381 102,381 At 31 March 2019 Trade and other payables (Note 8) 375,297 375,297 375,297 Total financial liabilities 375,297 375,297 375,297


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a. Financial risk management – Objectives and policies (continued) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The company is exposed to two sources of credit risk – amounts receivable and counterparty risk in respect of funds deposited with banks and other financial institutions.

Funds are deposited only with those banks and financial institutions approved by the Board. Such approval is only given in respect of banks that hold ‘AA’ ratings from Standard & Poor’s or an equivalent rating from another reputable ratings agency. At the reporting date, the Company did not have any material credit risk exposures to any single receivable or group of receivables or any bank or financial institution.

Exposure to credit risk

The carrying amount of the Company’s financial assets best represents its maximum credit risk exposure. The Company’s maximum exposure to credit risk at the reporting date was:

Note

Carrying amount 31 March 2019

$

Carrying amount 30 June 2018

$ Cash 5 1,440,698 1,449,438 Other receivables 6 138,665 148,026 1,579,363 1,597,464

Other receivables comprise amounts due from donors and an amount owed to the Company by its bank. The aging of these debtors at reporting dates was:

31 March 2019 30 June 2018 Gross $ Impairment

$ Gross $ Impairment

$ Current 113,665 - 148,026 - Over 180 days 25,000 - - - 138,665 - 148,026 -

The Company received $25,000 of the amount due over 180 days after the financial period-end.


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a. Financial risk management – Objectives and policies (continued)

Market price risk

Market price risk is the risk that changes in market prices such as foreign exchange rates, interest rates and equity prices will affect the Company’s income or the value of its holdings of financial instruments. As the Company’s major supporter has agreed to ‘make good’ any foreign exchange losses, the Directors have determined the company’s exposure to market price risk is immaterial.

Currency risks

As the Company’s major supporter has agreed to ‘make good’ any foreign exchange losses, the company has adopted a policy not to hedge against any fluctuations in foreign currency exchange rates.

b. Fair values Carrying amounts of financial assets and liabilities recorded in the financial statements represent their net fair values, as determined in accordance with the accounting policies disclosed in Notes 2(f) and 2(h) to the financial statements.

12. Cash flow information

Reconciliation of net surplus for the year / period to net cash flow from operations:

Note

31 March 2019 $

30 June 2018 $

Net (deficit)/surplus for the period / year (255,033) 540,747 Depreciation of property, plant and equipment Provisions

7 9

3,437 (39,423)

9,292 18,504

(Increase)/Decrease in assets Decrease/(Increase) in other receivables 6 9,361 (71,498) Increase/(Decrease) in liabilities Increase/(decrease) in trade and other payables 8 272,916 32,363 Other (2) - Net cash flow from operations (8,740) 529,408


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13. Commitment and contingencies Operating leases

The Company had entered into a sub-lease of office space. The lease is free of charge and the owners have confirmed that occupancy could continue after the existing sub-lease agreement terminated on November 2018. As such, no future commitment exists in this regard.

14. Related parties and related party transactions

a. Directors’ compensation The Directors act in an honorary capacity and receive no compensation for their services. During the period, travel expenses totalling $404 incurred by a Director in fulfilling their role was reimbursed.

b. Key management personnel compensation

31 March 2019 $

30 June 2018

$ Short-term employee benefits 221,948 260,000 Total compensation 221,948 260,000

15. Economic dependency

The Company is dependent upon the ongoing receipt of Donations from supporters and the Prince’s Trust UK to ensure the continuance of its operations.

A member firm of Ernst & Young Global LimitedLiability limited by a scheme approved under Professional Standards Legislation

Ernst & Young8 Exhibition StreetMelbourne VIC 3000 AustraliaGPO Box 67 Melbourne VIC 3001

Tel: +61 3 9288 8000Fax: +61 3 8650 7777ey.com/au

Independent Auditor's Report to the Members of The Prince’s TrustAustralia Limited

Report on the Financial Report

Opinion

We have audited the financial report of The Prince’s Trust Australia (the Company), which comprises thestatement of financial position as at 31 March 2019, the statement of comprehensive income, statementof changes in equity and statement of cash flows for the period then ended, notes to the financialstatements, including a summary of significant accounting policies, and the directors' declaration.

In our opinion, the accompanying financial report of the Company is in accordance with the AustralianCharities and Not-for-Profits Commission Act 2012, including:

a) giving a true and fair view of the Company's financial position as at 31 March 2019 and of itsfinancial performance for the period ended on that date; and

b) complying with Australian Accounting Standards and the Australian Charities and Not-for-ProfitsCommission Regulation 2013.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities underthose standards are further described in the Auditor’s Responsibilities for the Audit of the FinancialReport section of our report. We are independent of the Company in accordance with the ethicalrequirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics forProfessional Accountants (the Code) that are relevant to our audit of the financial report in Australia. Wehave also fulfilled our other ethical responsibilities in accordance with the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour opinion.

Information Other than the Financial Report and Auditor’s Report Thereon

The directors are responsible for the other information. The other information is the directors’ reportaccompanying the financial report.

Our opinion on the financial report does not cover the other information and accordingly we do notexpress any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and,in doing so, consider whether the other information is materially inconsistent with the financial report orour knowledge obtained in the audit or otherwise appears to be materially misstated.

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If, based on the work we have performed, we conclude that there is a material misstatement of this otherinformation, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the Financial Report

The directors of the Company are responsible for the preparation of the financial report that gives a trueand fair view in accordance with Australian Accounting Standards and the Australian Charities and Not-for-Profits Commission Act 2012 and for such internal control as the directors determine is necessary toenable the preparation of the financial report that gives a true and fair view and is free from materialmisstatement, whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the Company’s ability tocontinue as a going concern, disclosing, as applicable, matters relating to going concern and using thegoing concern basis of accounting unless the directors either intend to liquidate the Company or to ceaseoperations, or have no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is freefrom material misstatement, whether due to fraud or error, and to issue an auditor’s report that includesour opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an auditconducted in accordance with the Australian Auditing Standards will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and are considered material if,individually or in the aggregate, they could reasonably be expected to influence the economic decisions ofusers taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professionaljudgment and maintain professional scepticism throughout the audit. We also:

· Identify and assess the risks of material misstatement of the financial report, whether due to fraudor error, design and perform audit procedures responsive to those risks, and obtain audit evidencethat is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting amaterial misstatement resulting from fraud is higher than for one resulting from error, as fraudmay involve collusion, forgery, intentional omissions, misrepresentations, or the override ofinternal control.

· Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose of expressing anopinion on the effectiveness of the Company’s internal control.

· Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by the directors.

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· Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Company’s ability to continue as a going concern.If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’sreport to the related disclosures in the financial report or, if such disclosures are inadequate, tomodify our opinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor’s report. However, future events or conditions may cause the Company to cease tocontinue as a going concern.

· Evaluate the overall presentation, structure and content of the financial report, including thedisclosures, and whether the financial report represents the underlying transactions and events in amanner that achieves fair presentation.

We communicate with the directors regarding, among other matters, the planned scope and timing of theaudit and significant audit findings, including any significant deficiencies in internal control that weidentify during our audit.

Ernst & Young

Brett CroftPartnerMelbourne26 September 2019

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Ernst & Young8 Exhibition StreetMelbourne VIC 3000 AustraliaGPO Box 67 Melbourne VIC 3001

Tel: +61 3 9288 8000Fax: +61 3 8650 7777ey.com/au

Auditor’s Independence Declaration to the Directors of The Prince’sTrust Australia Limited

In relation to our audit of the financial report of The Prince’s Trust Australia Limited for the financialperiod ended 31 March 2019, and in accordance with the requirements of Subdivision 60-C of theAustralian Charities and Not-for Profits Commission Act 2012, to the best of my knowledge and belief,there have been no contraventions of the auditor independence requirements of any applicable code ofprofessional conduct.

Ernst & Young

Brett CroftPartner26 September 2019

26

The Prince’s Trust Australia Limited...2019/08/19 · 513,842 Cash at beginning of period/year 1,449,438 935,596 Cash at end of period/year 2(e), 5 1,440,698 1,449,438 The Prince’s

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